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RETAIL RESEARCH Page | 2

EBIT 703.8 621.1 13.3 901.1 21.9

Other Income 131.5 182.1 27.8 20.4 744.6

Sequential sharp rise in other income was due to lower forward cover losses (loss of Rs.

38.8 mn compared to loss of Rs. 112.1 mn in Q4FY14 and translation gains (Rs. 43.5 mn

compared to translation loss of Rs. 35.4 mn in Q4FY14).

Interest 11 6.9 59.4 8.3 32.5PBT 824.3 796.3 3.5 872.4 5.5

Tax 186.7 294.5 36.6 213.8 12.7

Effective tax rate on PBT declined by 1433 bps YoY & 186 bps QoQ to 22.6%. Lower tax

rate was due to ramp up in SEZ business and a one off benefit of 1.4%, towards deferred

tax & other onetime benefits. The company had earlier guided for lower tax rates in FY15

(expected t o go down by 2% over FY15).

PAT 637.6 501.8 27.1 658.6 3.2

Profit / Loss from Associates 47.5 41.3 15.0 39.8 19.3

Reported PAT 685.1 543.1 26.1 698.4 1.9Sequential PAT degrowth was better than expectations aided by higher other income and

lower effective tax rate.EPS 6.1 4.9 26.1 6.2 1.6

Equity 558.2 558.2 0.0 559.8 0.3

FV 5.0 5.0 0.0 5.0 0.0

Gross Profit Margin (%) 37.9 36.2 41.3

EBITDAM (%) 14.1 16.6 18.1QoQ fall in margins was due to INR appreciation (impact of ~297 bps) and wage hike

(impact of 100 bps).

EBITM (%) 11.3 12.8 15.1

PATM (%) 10.3 10.4 11.1

(Source: Company, HDFC Sec)

Some observations on Q1FY15 results:

Geographically, the growth was led by APAC (up 12.3% QoQ) and Americas (up 4.7% QoQ Excluding Softential revenue of USD 3.56 mn). Europe, Middle East,

Africa and India [EMEA] grew marginally by 0.6% QoQ. North America growth was led by ramp up in key clients in Semiconductor, aerospace, Energy,

Communications and Utilities industries. Increased revenues in APAC were due to growth in existing customers in Energy and communication industries. Growth in

EMEA was driven by Aero, Content and Navigation industries.

Geography wise revenue distribution:

Particulars Q1FY15 Q4FY14 Q1FY14

Americas 60.9% 59.2% 58.4%

EMEA 29.3% 31.4% 28.8%

Asia Pacific 9.8% 9.4% 12.8%

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